African Alliance Posts N5.67bn PBT, Grows Assets, By 29% To N40
By Ngozi Onyeakusi— Foremost life insurer, African Alliance Insurance PLC, has declared a profit before tax of N5.67bn in 2020 compared to a loss of N7.04bn in 2019 representing over 1300% year-on-year increase. This was made known at the company’s hybrid 52nd Annual General Meeting held in Lagos and streamed online.
Writing in the Chairman’s Statement to shareholders, the company’s Chairman, Dr Anthony Okocha, whose retirement was later announced at the event, high-lighted the many progresses of the company in the year under review. “Your Company was able to grow its asset base by 29% from over N40 billion to N56.3 billion. This was as a result of substantial capital injection which gave us a boost on our bottom line to the tune of N5.67 billion from the 2019 loss position of – N7.04 billion. These profits have been immediately assigned as retained earnings to further boost our ongoing quest to revamp our books and grow the overall financial standing of your Company,” he said.
A further analysis of the books shows that the company paid N8.16bn in claims, a 21% reduction year-on-year on the previous year’s figure of N10.4bn. This, according to the Chairman, was as a “result of shrewd underwriting/ vibrant risk selection process which saw us cede strategically to reinsurers.” The firm’s income from investments dropped also by 19% from N3.02bn to N2.46bn, a direct outcome of the decline in market rates, however, the company’s operating expenses also reduced by 14% as a precautionary counterbalance to the reduced earnings.
Whilst giving her remarks at the event, Joyce Ojemudia, Managing Director/Chief Executive Officer, African Alliance Insurance PLC, restated the management’s commitment to optimising costs and growing the market. She said, “Our main focus next year is to grow our market share substantially. This will be achieved by massive beef-up of the sales team (field force and corporate marketers) and provision of necessary tools to aid marketing activities. We will reopen branches in locations we have found promising and enhance our presence in existing locations. Our quest to maintain physical presence resonates with our integrity drive as insurance is a business of trust especially amongst the retail market. This effort will be supported by digital technology as we adopt a two-prong onslaught on the market.” She also listed as priorities the renewal of the company’s ISO certification as a business tool to enhance market confidence; staff training and retraining to aid knowledge acquisition; recruitment into key technical areas as well as massive IT upgrades to support the business goals.
Also at the meeting, the retirement of Dr Anthony Okocha, the company’s Board Chairman, effective 20th September, 2021, was announced. Sylva Ogwemoh SAN, a Non-Executive Director of the Company, who chaired the meeting, described the retired Chairman as a man who was passionate towards the cause of African Alliance Insurance PLC. “For a man to have led the board for 9 years is testament to his resilience despite all odds. We wish him a happy retirement and on behalf of the Board, management, staff and shareholders of the company, we thank him for his contributions to the growth of the company,” Ogwemoh said. Recall that under Dr Okocha’s watch, the company successfully conducted the first rebranding exercise in its 61 year history firmly making it attractive to younger professionals and repositioning it for future success.
Incorporated in 1960, African Alliance Insurance PLC is widely regarded as the strongest life specialist in the industry. With a policyholder base of over 50,000 policies, spanning more than three generation, the company is adequately positioned to provide innovative and customized plans for the Nigerian market.
Signed
Bankole Banjo
Brand, Media and Communications Manager
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